1 The Short-Run Cost function of a company is given by the equation: TC = 500+80Q2+ 3Q3 where: TC is the total cost and Q is the total quantity of output, both measured in millions of dollars. If the company produced 5 units of goods, its average fixed cost is equal: a . 80 b . 100 .c 90 d . 70 1 2 A market structure that characterised by the folowing: 1. A few dominant firms and a large number of competitive fringe firms 2. Dominant firms selling products that are differentiated in some manner: real, perceived, or just imagined 3. Independent decision making by individual firms 4. Ease of entry and exit from the market as a whole but very substantial barriers to effective entry among the leading brands :is called a . Monopolistic Competition b . Monopoly .c Oligopoly d . There are three generic types of strategies: 1. Product differentiation strategy 2. Lowest-delivered-cost strategy: and: Pure Competition 1 3 a . Highest-delivered-cost strategy b . Information cost strategy .c Product size strategy d . Information technology (IT) strategy 1 4 We called the return or compensation that must be foregone as the result of the decision to employ the resource in a given economic activity: a . The Opportunity costs b . The Economist costs .c The accountant costs d . The Managers costs 1 5 The Short-Run Cost function of a company is given by the equation: TC = 500+80Q2+ 3Q3 where: TC is the total cost and Q is the total quantity of output, both measured in millions of dollars. The company's Fixed Cost is equal to: a . 550 b . 400 .c 500 d . 650 1 6 If the Total Revenue (TR) = 12Q and Total Cost (TC) = Q2 + 2Q + 4 Where: Q = is the quanity produced To maximixe the Total profit we have .to produce .............. units a . 3 b . 10 .c 12 d . 5 1 7 If the Total Revenue (TR) = 12Q and Total Cost (TC) = Q2 + 2Q + 4 Where: Q = is the quanity produced :The Marginal Cost (MC) if we produce 3 units is equal a . 10 b . 6 .c 12 d . 8 The 6th force that often added to the Porter's Five Forces Strategic Framework is: 1 8 a . The power of buyers b . The threat of substitutes .c the threat of a disruptive technology d . The intensity of rivalry The essence of competitive strategy is threefold: 1. Resource-based capabilities 2. Business processes and: 1 9 a . Adaptive innovation b . Humane-based capabilities .c capital-based capabilities d . Business operatios 1 10 The smallest scale at which minimum costs per unit are attained is called: a . Maximum efficient scale (MES) b . Economies of Scale .c Diseconomies of Scale d . Minimum efficient scale (MES) 1 11 The relevant market with a majority of total sales occurring in the largest four firms is called: a . concentrated market b . common market .c consolidated market d . fragmented market 1 12 The market structure that characterized by one firm producing a highly differentiated product in a market with significant :barriers to entry, is called a . Pure Competition b . Monopolistic Competition .c Oligopoly d . Monopoly 1 13 Declining long-run average costs as the rate of output for a product, plant, or firm is increased is called: a . Maximum efficient scale b . Internal dieconomies of scale .c Minimum efficient scale d . Internal economies of scale 1 14 The Short-Run Cost function of a company is given by the equation: TC = 500+80Q2+ 3Q3 where: TC is the total cost and Q is the total quantity of output, both measured in millions of dollars. If the company produced 5 units of goods, its :marginal cost is equal a 1335 . b . 1235 .c 1025 d . 950 1 15 If the Total Revenue (TR) = 12Q and Total Cost (TC) = Q2 + 2Q + 4 Where: Q = is the quanity produced :The Total profit if we produce 3 units is equal a . 13 b . 20 .c 17 d . 15 The Short-Run Cost function of a company is given by the equation: TC = 500+80Q2+ 3Q3 where: TC is the total cost and Q is the total quantity of output, both measured in millions of dollars. If the company produced 5 units of goods, its average :variable cost is equal 1 16 a 445 . b . 475 .c 455 d . 465 1 17 The Short-Run Cost function of a company is given by the equation: TC = 500+80Q2+ 3Q3 where: TC is the total cost and Q is the total quantity of output, both measured in millions of dollars. If the company produced 5 units of goods, its total cost is equal: a . 1875 b . 3875 .c 2875 d . 4875 1 18 We called the market structure in which the number of firms is so small that the actions of any one firm are likely to have noticeable impacts on the performance of other firms in the industry a . Monopoly b . Oligopoly .c Pure Competition d . Monopolistic Competition 1 19 we called the market structure that characterized by a large number of buyers and sellers of a homogenous (nondifferentiated) product. Entry and exit from the industry is costless, or nearly so. Information is freely available to all market participants, and there is no :collusion among firms in the industry a . Oligopoly b . Monopolistic Competition .c Pure Competition d . Monopoly 1 20 If the Total Revenue (TR) = 12Q and Total Cost (TC) = Q2 + 2Q + 4 Where: Q = is the quanity produced :The Marginal Revenue (MR) equal a . 10 b . 15 .c 8 d . 12 1